RAM Capital Corporation

About RAM Capital Corporation

RAM Capital Corporation is a San Jose, CA based hard money lender. They offer loans throughout California. They provide fix-and-flip loans, long term rental property loans, and cash out loans. The focus of their lending is on single family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family

Areas Served: CA

Licenses: NMLS: 82465

Lending Guidelines for RAM Capital Corporation

Below are the general loan guidelines published on the RAM Capital Corporation website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by RAM Capital Corporation.

Loan Example 1

Megan takes a private money loan from RAM Capital Corporation in order to rehab a property to flip in Los Angeles, CA. The price of the house is $230,000. The terms of the note include a 50% loan-to-value (LTV), so she must bring 50% of the price as cash to closing, which makes the principle note amount $115,000. The parameters of the deal dictate a 9% note for 6 months. They also stipulate a 1 point origination fee, which will also have to be paid when the property closes.

The borrower will need to fund a total of $32,400 up front to pay the $115,000 down payment plus the $1,150 origination fee. The monthly interest-only payments will then be $863 to RAM Capital Corporation. Megan's intention is to finish the house by the end of the 6 months and resell it for $299,000. If she succeeds she will collect a gross profit of $62,675 ($299,000 sales price - $115,000 principle - $115,000 cash paid at closing - $1,150 origination points - $5,175 in total interest.

Loan Example 2

Andy takes a hard money loan from RAM Capital Corporation so he can renovate a property to flip in Los Angeles, CA. The deal has the following parameters:

$280,000 sales price
55% loan to value (LTV)
6 month term
10% rate of interest
5% origination fee

Andy intends to sell the house at the end of the term for $364,000. If he achieves this goal, the final numbers would be the following:

$364,000 sales price
- $154,000 principle (55% LTV)
- $126,000 cash paid at closing (45% on 55% LTV)
- $7,700 origination points (5% of the $154,000 principle amount)
- $7,700 interest payments (6 months x 10% interest)
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= $68,600 total profit (does not include taxes or rehab costs)